Premier Danielle Smith says there could be a budget defecit [Video]

Alberta Premier Danielle Smith says a potential budget deficit next year is not off the table as oil prices sit below what was projected.

Smith told reporters Tuesday that although the government’s 2024 budget initially projected a surplus of $367 million when it was tabled in February, a deficit was always possible if oil prices dropped.

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The projected surplus was dependent on West Texas Intermediate oil prices averaging US$74 per barrel, but the price to start the week has been around US$68 per barrel.

She told reporters Tuesday the lower-than-forecast oil price, coupled with other “different pressures coming our way” is straining the province’s financial outlook.

“It’s a serious problem,” Smith said.

“We have a number of different pressures coming our way and we have to be honest with people about what we’re facing.”

Finance Minister Nate Horner said it’s too early to say for sure Alberta will see a deficit, but he said posting a …